(RTTNews) -  Thursday, Cumberland Pharmaceuticals Inc. (CPIX: News ), reported a dip in profit for the second quarter, mainly due to an increase in operating expenses from milestone payments associated with FDA's approval of Caldolor, the company's injectable pain and fever treatment product.

The Nashville, Tennessee based company's net income for the second quarter declined to $0.3 million or $0.02 per share from $1.06 million or $0.07 per share in the year-ago period.

Net revenues increased 18% to $9.82 million from $8.35 million year-ago, the resulting mainly from increased volumes of Acetadote, the company's injectable treatment for acetaminophen overdose.

The company's operating expenses increased to $9.22 million from $6.52 million during the same period last year. Expenses rose primarily due to milestone payments associated with FDA's approval of Caldolor in June 2009, as well as increased marketing expenses.

According to A.J. Kazimi, Cumberland's chief executive officer, "Caldolor will offer an important alternative for physicians in treating patients with fever or pain where oral treatment is not ideal or even a viable option."

The company recently completed an expansion that nearly tripled the size of its hospital sales force in preparation for the product's launch, increasing the size of this group from 27 to 77 experienced hospital representatives and managers.
Cumberland Pharmaceuticals' other two products include Acetadote and Kristalose. Acetadote is an approved injectable product in the United States for the treatment of acetaminophen overdose, one of the major cause of poisonings presenting in emergency departments in the country. Kristalose is indicated in the treatment of acute and chronic constipation. It is a unique, proprietary, crystalline form of lactulose, with no restrictions on length of therapy or patient age.

At June 30, Cumberland had $12.5 million in cash and cash equivalents, compared to $10.1 million at March 31, 2009.

In early August, the company completed an initial public offering of 5,000,000 shares of common stock, raising $85.0 million in gross proceeds. Net proceeds to the company are estimated to be approximately $75.2 million after expenses and before exercise of any over-allotment option. Cumberland expects to use the proceeds primarily for the pending launch of Caldolor and for potential acquisitions.

Year-to-date net income of Cumberland declined to $1.513 million or $0.09 per share from $2.45 million or $0.15 per share in the prior year period.

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